CM nixes BBMP’s 25% property tax hike proposal

BSY prefers NR Ramesh’s proposal to measure big establishments scientifically to get more property tax

BENGALURU:

BBMP Commissioner N Manjunatha Prasad’s proposal for a 25 per cent increase in property tax, in a bid to bring in more revenue to the financially starved civic body, was reportedly axed on Monday by Chief Minister BS Yediyurappa. Instead, the CM reportedly agreed to an alternative tax proposal by the BJP’s Bengaluru South unit president and former corporator NR Ramesh.

As per Ramesh’s written proposal to the CM, within the BBMP limits there are apartments, industrial buildings, tech parks, malls and multiplexes, IT-BT companies, PG hostels, telecom towers, super speciality hospitals, private schools and colleges, function halls and hotels which should be scientifically measured. If property tax is levied on their real built-up area, more than Rs 7,000 crore can be collected annually, he has proposed.

‘Too many officers’

Also, the four major departments of BBMP — Department of Urban Planning, Department of Road Infrastructure, Department of Planning (Centre) and Storm Water Drain Department — have officers beyond the sanctioned posts. As a result, there is an extra salary burden of Rs 3 crore every month, Ramesh said.

The eight zones of the Palike have 8 ACFs and 8 DCFs, on whom the Palike spends more than Rs 60 lakh per month, he said.

He has proposed to the CM that these additional officers be sent back to their parent departments, thereby saving Rs 40 crore annually for BBMP.

In response, the Chief Minister said the proposal to increase property tax would be immediately dropped and the same would be conveyed to the BBMP Commissioner and the BBMP Administrator.